HomeMy WebLinkAbout940745 RESOLUTION
RE: APPROVE EXTENSION OF 60-DAY SHUT-IN PROVISION FOR BICK E 1122-1 WELL
LOCATED IN NEtNEt OF SECTION 22, TOWNSHIP 6 NORTH, RANGE 65 WEST OF THE
6TH P.M. , WELD COUNTY, COLORADO - PRIMA EXPLORATION, INC.
WHEREAS, the Board of County Commissioners of Weld County, Colorado,
pursuant to Colorado statute and the Weld County Home Rule Charter, is vested
with the authority of administering the affairs of Weld County, Colorado, and
WHEREAS, on March 14, 1993, the Weld County Board of County Commissioners
entered into an Oil and Gas Lease for property located in the NE,'-,NEa of
Section 22, Township 6 North, Range 65 West of the 6th P.M. , Weld County,
Colorado, a copy of which is attached hereto and incorporated herein by
reference, and
WHEREAS, said Lease pertains to property 1.53 acres in size, and
WHEREAS, since March 1983, the Lease has been assigned to various oil
production companies, with the most current assignee being Prima Exploration,
Inc. , and
WHEREAS, since March 1983, the BICK E #22-1 well, located on said property,
has been producing oil continuously and, therefore, the Lease has been extended
during such time of production, and
WHEREAS, on or about June 11, 1994, the well was shut-in, thereby beginning
the 60-day shut-in provision contained in paragraph 5 of said Lease,
WHEREAS, Prima Exploration, Inc. , has presented a request to the Board of
County Commissioners wherein Prima is asking for an extension of said 60-day
shut-in provision to and until February 6, 1995, and
WHEREAS, in consideration of said requested extension of the shut-in
provision, Prima has presented to the Board of County Commissioners a check in
the sum of $52, representing one-third of the original bonus ($150) and $1 per
acre, and
WHEREAS, the Board of County Commissioners now deems it desirable to extend
said 60-day shut-in provision for an additional 180 days beyond the expiration
of the original 60-day time period (August 10, 1994) to and until February 6,
1995.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the 60-day shut-in provision contained in paragraph 5 of
the Oil and Gas Lease dated March 14, 1983, and recorded at Book 991, Reception
01920667 in the Office of the Weld County Clerk and Recorder, a copy of which is
attached hereto and incorporated herein by reference, is extended for an
additional 180 days beyond August 10, 1994, to and until February 6, 1995.
940745
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RE: EXTENSION OF 60-DAY SHUT-IN PROVISION - PRIMA EXPLORATION, INC.
PAGE 2
BE IT FURTHER RESOLVED by the Board of County Commissioners that all of the
remaining provisions contained in said Oil and Gas Lease shall remain the same
and that the well located on said property must be recompleted and production
restarted no later than February 6, 1995.
The above and foregoing Resolution was, on motion duly made and seconded,
adopted by the following vote on the 1st day of August, A.D. , 1994.
/0/ILL
BOARD OF COUNTY COMMISSIONERS
ATTEST: I �J �/'dV,['/V/'V/// WELD /COUNTY, COLORADO
Weld County Clerk to the Board ja/l TIV 1,040
W. H. Webster, Chairm
BY: ,�-/' EXCUSED
( Deputy C er to the oar Dale Hall, -TemJ�
APPROVED AS TO FORM: L°
Geo e Baxter
County Attirn Constance L. Harbert
EXCUSED
Barbara J. Kirkmeyer
940745
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to t mEmORAnDUm
Willie To Board of County Commissiorwaas July 26, 1994
COLORADO From Bruce T. Barker, County Attorney
ttequest ny vrima Exploration, inc. , for extension
of 60-day Shut-in Provision for BICK E # 22-1 Well
Subject:
Attached is a letter which I received from Jane Hammond of Prima
Exploration, Inc. , requesting an extension of the 60-day shut-in
provision in the Lease for the BICK E # 22-1 Well . The well is
located in the NE4NE4 of Section 22, Township 6 North, Range 65
West of the 6th P.M. , Weld County, Colorado. Also attached is a
copy of the original Lease.
The 60-day shut-in provision of the Lease is found in paragraph 5 .
Apparently the BICK E # 22-1 well was shut-in on or about June 11,
1994 . Ms. Hammond figures the 60-day time period will end on
August 10, 1994 . Prima desires to recomplete the well; however, it
will not be able to do so until sometime in the early fall (either
September or October, 1994) .
Ms . Hammond called me to ask if there was a way to extend the 60-
day time period. I told her that we have no procedure for doing
so. I did mention, however, that we do have a six month extension
period for the normal lease time (three years) set forth in the
Administrative Manual . I see this case as being somewhat similar
to the County' s extension policy. A copy of that extension policy
is attached.
I suggest that the Board allow Prima to have an extension of six
months for the time in which it needs to recomplete the well and
get it back into production. Thus, the Board will need to extend
the 60-day time period found in paragraph 5 for shut-in wells to
240 days . I figure the end date will be February 6, 1995 .
Ms . Hammond has provided me with a check in the sum of $52, which
represents one-third of the original bonus ($150) plus $1 per acre.
The total acreage in this Lease is 1. 53 acres.
I therefore recommend that the Board approve the Resolution which
I have submitted to the Clerk to the Board' s Office and which
extends the time in which Prima may recomplete the well and begin
production to and until February 6, 1995 .
Br ! T. Ba k)
Weld County Attorney
BTB/gb:brdprima
Attachment
940745
/_5000(p
THE BANK OF CHERRY CREEK 13 43 4
PRIMA EXPLORATION. INC. DENVER, COLORADO 80208
PH. 303-779-0402 23-95-1020
7800 E. UNION AVE., SUITE 805
DENVER, CO 80237
PAY FIFTY-TWO AND NO/100 dollars
DATE AMOUNT
TO THE
ORDER OF July 21, 1994 $52.00****
Weld County Commissioners
P. O. Box 1948
Greeley, CO 80632
II'0 134 340• I: L0 20009 5 3i: 16 58 5 1711•
PRIMA EXPLORATION. INC. 13 4 3 4
Bonus for lease extension $52.00
Bick E #22-1; NE/4 NE/4, Section 22-6N-65W, Weld County, Colorado
well 181; A/C 628; vendor 1016; vsw
940145
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7800 East Unite—venue -
Swte 605
Denver. Colorado 80237
Telephone 303/779 0402 rri ��„-7t97f'1[7L='I
Elk
JUL 221994
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ELD COUNTY
July 21, 1994 ATTORNEY'S OFFICE
PRIMA EXPLORATION INC.
Mr. Bruce Barker
Weld County Attorney
Weld County Commissioner's Office
P.O. Box 1948
Greeley, Colorado 80632
RE: Bick E. #22-1
NE/4 NE/4, Section 22-6N-65W
Weld County, Colorado
Dear Bruce:
As we discussed today, Prima Exploration, Inc. is requesting a six month
extension of that certain oil and gas lease currently held by the well
captioned above. This extension would be treated somewhat like the
shut-in provision under your extension policy.
The Bick E. #22-1 is currently completed in the Parkman formation.
However, we have discovered a hole in the pump and the well has been
shut-in. According to the 60-day shut-in provision in your lease the well
must be re-worked or "back on"by August 10th. Prima would like to
recomplete this well in the Codell formation but would like to be able to
start the recompletion in the fall, after the crops are harvested for the
year.
As agreed, I have enclosed a bonus check for the six month extension, in
the amount of$52.00. This was calculated by taking one-third of the
original bonus amount ($150.00) plus a dollar an acre (1.53 acres).
Mr. Bruce Barker
Weld County Commissioner
July 21, 1994
Page Two
I thank you for all your help in this matter and look forward to receiving
J � your decision in this matter.
Sincerely,
PRIMA EXPLORATION, INC.
Jane Hammond
940'7-1S
1 r O L I C I E S AND PROCEDURES
Ak :k;
P SECTION GENERAL ADMINISTRATION
�����• SUBJECT MINERAL LEASING POLICY CONCERNING EXTENSIONS
COLORADO DATE March 23, 1992 PAGE 35
MINERAL LEASING POLICY CONCERNING EXTENSIONS
On August 29, 1985, the Board of County Commissioners adopted the following
policy for extending the terms of all mineral leases. The board will extend the
terms of all mineral leases in which it is the Lessor according to the following
conditions:
1. No lease term will be extended for more than six (6) months from the
original expiration date as contained in the mineral lease.
2. That the Lessee shall pay to the Lessor the sum of one-third of the
original bonus, with a minimum bonus of Ten Dollars ($10.00) per
acre.
3. The Lessee must pay to the Lessor the sum of One Dollar ($1.00) per
acre leased as delayed rental for the term of the extension.
4. That the royalty will remain the same as in the original lease.
940945
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